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Flashcards in Week 6: Statutory Income Deck (15)
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1

What is Statutory Income?

Part of AI, that is not ordinary in nature

2

When is statutory income NOT assessable?

Exempt income + Non-assessable non-exempt income

3

Regarding allowances, what is the taxpayer's AI assessed on?

allowances, gratuities, compensations, benefits, bonuses, and premiums to, any employment of or services rendered by the taxpayer.

4

What is recoupments of deductible amounts

reverses the benefit of deductions allowed for certain losses and outgoings that have been recouped

5

What is non cash benefits?

benefit that is not convertible into cash is treated as if it were convertible into cash

6

What is exempt income

ordinary/statutory income that is exempt

7

What are the types of exempt income?

1st class & 2nd Class

8

What are 3 examples of non-assessable non-exempt income

GST on a taxable supply s17-5 ITAA97

Income that is a fringe benefit s23L(1) ITAA36

Amounts subject to withholding tax s128D ITAA36

9

What does 'specific deductions mean' and how do they differ to 'general deductions'?

designed to provide deductions for particular kinds of expenditure that might not otherwise be deductible under the general deduction provision

10

What are the 7 'specific deductions' provisions?

Tax-related exp

Repairs

Replacement & Restoration

Maintenance

Borrowing exp

Bad debts

Gifts

11

What is the formula for tax loss?

tax loss for income year = deductions for the income year (other than tax losses from prior yr)- Assessable income and net exempt income for the income year

12

How can a provision deny or limit deductions?

though an outgoing may satisfy the requirements of a deduction provision, another provision may deny or limit the deduction available

13

What written evidence should individuals have to claim deductions?

Work expenses
Car expenses
Business travel expenses

14

What are the 2 methods for deducting car expenses?

Cents per kilometre method
Log book method

15

What taxes are deductions 'denied' for?

Income tax (s 25-5)
GST (s 27-15)
SGC (s 26-95)
Superannuation-related taxes